Sunday 27 February 2011

Disabled people thrown out of work by Remploy

Historically welfare to work policies have concentrated on job placement, however, recent UK government policy, as seen in the recent round of bidding for the Work Programme, has seen a shifting of focus towards sustainable job outcomes where sustainability may only be recognised two years after being placed in work.

In order to be seen as a leading player in this new policy, Remploy have commissioned Inclusion to produce an independent research report into career advancement to be published on Monday 7th March. They will be hosting a series of roundtable discussions later in March, to share the findings of this research more widely and discuss how career advancement can aid sustainability in today’s welfare to work arena.

I am sure news that Remploy are working hard to stay ahead in the field will bring much comfort to the 1,500 employees, most of whom are disabled workers who were earlier this month given notice of pending redundancy. Remploy is a government-funded body that has its own businesses providing jobs for 3,000 disabled people, including 227 in Greater Manchester, as well as an employment agency that find them posts with private employers.

Bosses at the firm say the business has suffered because of the difficult economic climate, with many factories operating at less than 50 per cent capacity. If this be the case, it begs the question of why are they spending money they clearly don’t have to commission research – particularly as Remploy is not fulfilling its mission to provide sustainable employment opportunities for disabled people.

A spokesperson was reported as saying:

“This scheme is voluntary and every employee will be able to choose if they want to apply for the severance package.

Oh, that’s OK then – in that case everyone can stay. Or maybe not.

“We will ensure that any employee who decides to leave and wants to continue working, will have guaranteed support from our employment services to find another job.”

Well that will make all those newly unemployed people a whole lot better won’t it. And does anyone else see a possible irony here? They make people redundant and then they find disabled people work – probably through one of their government-funded schemes. So, in effect, they are creating their own customers. How callous is that?

Bishop Auckland MP Helen Goodman, who chaired a cross-party back bench inquiry into planned closures at Remploy in 2009, said: “The overwhelming priority is that there should be work opportunities for people with disabilities, and the Government, in taking its decision, must not salami slice and undermine Remploy because it is so important.”

Unite. the union in defending the workers being made redundant, blamed "poor management" for the announcement and leader, Len McCluskey said: "What these employees face is a nightmare scenario of struggling to find new jobs in the toughest jobs market since the early 1990s, when we all know that disabled people are always at the back of the jobs queue.

“Ultimately, there is the prospect that some of these factories could close.
“We will be campaigning against this voluntary redundancy programme during the 90-day consultation period.”

A Department of Work and Pensions spokesman said: "Remploy has had £555m government funding but unfortunately the factory arm of their business has not been able to successfully compete.”

Meanwhile, GMB members who now face redundancy have been given authority by the union central executive council for industrial action ballot over redundancies. The Committee have been advised that GMB members in Remploy have already voted in a consultative ballot by a majority of 5 to 1 to take strike action.
Let me be quite clear - The Big Society, if its exists, must mean finding work for disabled workers and a strike to stop the deliberate run down of Remploy shows disabled workers are fed up of being lectured on the big society by those in high society
Unfortunately, it is expected that preparing for the ballot will take at least six weeks and will be conducted by the Electoral Reform Services (ERS). This may be too late for many of the affected staff at the firm. Remploy last month told GMB that proposals for voluntary redundancy were being rolled out across the company from Monday 31st January 2011. This was just 7 days after the legal consultation period of 90 days commenced on the 24th January 2011.
What is known about previous redundancies made by Remploy in 2008 is that the vast majority of workers (85%) are still unemployed and on benefits with no prospects of finding work. The GMB CEC were also told that Remploy management has made little, or no progress, in finding work for the remaining Remploy factories in spite of the fact that EU rules allow public bodies to place orders with sheltered workshop outside of normal procurement arrangements.

The unions affected have placed an alternate plan before government to save jobs at the factories. Part of the plan is to reverse the rise in the number of managers which has increased despite reductions in the number of factories and shop floor workers. In total the Remploy unions have put forward a plan to cut £30million from costs while making Remploy viable.

Meanwhile, Work and Pensions Secretary Iain Duncan Smith personally asked Remploy to show restraint in the distribution of a bonus windfall to its top-tier management. However, directors went ahead with 288 bonuses and then embarked on their redundancy programme.
The payouts, which are subsidised by the taxpayer, saw directors handed bonuses of up to £15,000 each and include benefits that amount to more than the annual salaries earned by some of the workers. Certainly more than the average worker now facing a future of joblessness.
There is nothing new in these outrageous bonuses - the company paid its management team £1.5m in bonuses and benefits last year. Its accounts show that chief executive Tim Matthews, 59, who once listed drinking champagne among his interests in Who's Who, took home a record total package of £180,000. He also claimed thousands of pounds more in expenses for hotel stays and meals.
Remploy finance director Nigel Hopkins received a £140,000 package, including a £15,000 bonus. Further figures show that in the past three years consultants working with Remploy on the redundancy and other 'modernisation programmes' have been paid more than £6m.

A further example of the “them” and “us” culture under the Tories, but here we have a firm, supposedly dedicated to supporting some of the most vulnerable people in society, ruthlessly taking away their livelihoods whilst feeding the riches bosses of another welfare to work company.

And it’s all being done with our money!!!

11 comments:

  1. "A further example of the “them” and “us” culture under the Tories" - except that the accounts from which you are quoting cover the period to end-March 2010 when - guess who? - New Labour was in power. All the directors were appointed by New Labour (both the overpaid executives and the PC* non-execs) and the modernisation plan currently being implemented was approved by the DWP in 2007.
    Much though you might like to do so you cannot blame the Tories for the current situation.
    Incidentally, Remploy employs 5,000 not 3,000 and claims to have placed 10,661 disabled people in jobs last year so it's not quite as bad as you think. A strike would be pointless and hopeless since, if you exclude the DWP grant the loss by "employment services" was nearly three times revenue and that for the factories was over half turnover - before central costs and the pension scheme deficit (including those it was greater than turnover. The Chairman says that half his factor workers had "little or no meaningful work" so, although I should like to see Remploy maintaining employment a first step is to double production and sales or halve the workforce; the former cannot be done overnight.
    *One of whom was on the Labour Party National Executive and a majority of the others have were appointed to positions in the Public Sector under New Labour.

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  2. Thanks for your comment

    Your first point regarding the "them" and "us" culture starting under New Labour is entirely reasonable and regrettably the Party must hang its head in shame for losing sight of its socialist principles. It is an accusation I hear frequently - and if I am honest, there is no defence. Having said that, I still believe the current administration (and, of course by that I mean the Tories) will take this division to a whole new level.

    Yes, it is true Remploy has placed a large number of disabled people (though it remains unclear as to how many of these were permanent, full-time sustainable jobs. However, this does not excuse the company for the way it has treated its staff, or for the fact that when the last redundancies took place in 2008, over 80% of those thrown out of work were unable to secure alternative employment.

    As for Remploy doubling sales - of course we would all like to see that, but until that happens, the company needs to drawe its horns in - and the first line should have been to cancel directors bonuses. How can they justify paying themselves millions whilst throwing people onto the street?

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  3. I fear that you have missed the point - *all* of that about which you complain is New Labour. The current redundancies were planned in 2007; the bonuses published in the accounts were awarded pre-election by a group of non-execs who appear to be New Labour political appointees. The only Tory is IDS who appealed in vain to the New Labour crew's sense of decency.
    It would be difficult for the Tories to "take this division to a whole new level" even if they wanted to do so. Under New Labour the share of national wealth owned by the bottom half of the population fell by more than two-thirds - if the Tories carried on like New Labour it would be negative!

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  4. Far from missing the point, I would argue the reverse to be true. As I stated in my response, New Labour failed the electorate by losing sight of its socialist principles. I'm not sure how many times I have to repeat it, but if you need to hear it again - then there it is. But, before you go on a tirade of "see how bad Labour is", do not confuse Blairist New Labour with socialism - they are quite different.

    You have also yet to answer any of my points about the discrepancy between directors behaviour and the redundancies. Do you not see an injustice here? However much IDS may have disliked the terms, he didn't put any pressure on - and as Secretary of State at DWP with hands of the purse strings he had the power to force change.

    Oh - and for the record, would you care to name how many of the directors of Remploy you are accusing of being members or benefactors of the Labour Party?

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  5. "However much IDS may have disliked the terms, he didn't put any pressure on - and as Secretary of State at DWP with hands of the purse strings he had the power to force change." NOT SO - one of the New Labour appointees went to court to get a ruling that he/she had a legal right to the bonus. Unlike New Labour, the Tories are subject to the law.
    I do not *want* to answer any of your points about the discrepancy between the directors' bonuses and redundancies because (i) I agree with most of them, (ii) I do not see how the directors of a company whose trading losses exceed 50% of turnover can have earned a bonus and (iii) I cannot afford a libel lawyer if Tim Matthews should take offence.
    "do not confuse Blairist New Labour with socialism - they are quite different." This should read ""do not confuse Blairist New Labour with Tories - they are quite different." Under every Conservative government in my lifetime, the poor have ended better off (in terms of both income and wealth) but under New Labour the rich got richer while the poor got poorer.
    For the record - I do not hack into the Labour Party's membership records or accounts and I never stated that any of them was a benefactor of the Labour Party - I said that they "were appointed to positions in the Public Sector under New Labour." In fact, I do not hack into *anybody's* computer and if you are Old Labour, please don't distort what I said.
    You are just as able as I to read pages 5&6 of Remploy's accounts from which you included data in your OP. Joe Mann was on the NEC when appointed and is still a member of the National Policy Forum, Kate Nash has/had a directorship! with DWP and is/was a strategic advisor to Royal Mail, Peter Smith worked for the Department of Social Security, Guy Phillips for the Investment Management Regulatory Organisation; Ian Black was only a non-exec director of Luton Gateway

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  6. Golly, I think we have an angry Tory on our hands.

    I am neither old Labour nor New, I am a socialist.

    s for the Toriesd making the poor better off? tell that to the communities in South Wales that Maggie and her sychophants plundered. tell that to the miners she left without work.

    Oh and as the cuts bite tell it to the millions Tory greed will leave on the scrap heap

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  7. Oh and "for the record" longrun2, I never suggested you hacked into Labour Party records, that was your choice to mention it in this way.

    Also, your insinuation of distorting what you said is both innacurate and untrue. Kindly keep your comments respectful or I will be forced to delete your comments. You are welcome to disagree with me, but please do not lower the tone to this level. It does little justice to many of your excellent comments - even though I disagree with your position.

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  8. "Oh - and for the record, would you care to name how many of the directors of Remploy you are accusing of being members or benefactors of the Labour Party?"
    How the hell would I know if I didn't hack into the party records?
    I never said that, apart from Jo Mann, they were Labour Party members or benefactors - I said that they were appointed to the Board by New Labour and most of them were appointed to public sector posts under New Labour. I do not read minds so I did not even accuse them of being Labour supporters, merely PC. You DID distort what I said and I assumed that if you were Old Labour it was by accident as I could have honest debates and honest disagreements with the vast majority of the Old Labour people I used to know (except in 1964-6 when the only intelligent debate I could have was with the Treasurer of the university Communist Club as all the Labour guys thought the sun shone out of Wilson's backside and had no interest in policies). When I say "please" it means "please"

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  9. Well so far you have only been able to name one director who is, in your eyes, "New Labour" and that's Joe Mann. Interstingly, he didn't gain his position from some kind of sychophantic pandering to Blair, but because of his position as National Secretary of the National League of the Blind and Disabled [NLBD]. A trade union exclusively for disabled people established in 1899, and now a section of the ISTC Community Union.

    As for the others? Ian Russell primarily has a background in business, with previous involvement in Scottish Power and Mars Ltd; Tim Matthews did hold public appointments between 2000 and 2003, but not before a period as
    Senior Vice President and later as Managing Director of Parsons Brinckerhoff Ltd - demonstrating a level of business acumen top qualify him for the roles; Nigel Hopkins, Guy Phillips, Ian Black, Ian Harley and Ian Thornley all come from business backgrounds and all demonstrate high levels of success in their field. Peter Smith was appointed in the twilight years of "New Labour" so could hardly be called a 'hanger-on and Kate Nash has a long history of involvement in disability issues, including Chief Executive of the Royal Association for Disability and Rehabilitation (RADAR) for five and a half years.

    The bottom line is all these people have excellent CVs indicating their appropriateness for the jobs they hold. The fact that now they have chosen to take advantage of it and extract large bonuses whilst hundreds of workers face redundancy remains a disgrace for which there can be no excuse.

    For the record, it was not a "New Labour" appointee who went to court - there were a total of 288 bonuses paid out to managers as well as directors - and it was one of the managers who took legal action to keep his bonus. The directors for their part could easily have cut, or refused their bonus given the events that were to unfold!

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  10. Cool it and read what I actually said. I want Remploy to employ workers but you cannot blame the Tories for what Temploy did in the year to March 2010 nor for the current redundancy programme which was approved by the DWP in 2007!
    I did not say these people were New Labour but that they were appointed by New Labour and that you cannot blame the Tories for what they have done. I do not know whether Jo Mann is Old or New Labour: I said that - excluding him - a majority of non-execs had public sector posts under New Labour.
    Are you claiming that the manager who went to court was appointed more than 13 years ago? If so name him/her and date of appointment (which should be a matter of public record, but I don't have time to spend reading thousands of court documents to find the right one). Did any New Labour appointee volunteer to forego his/her bonus and, if so, why was it not reported?

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  11. It is totally fallacious to blame this redundancy programme on "New" Labour and detracts from the fact that the redundancies are happening today - under a Conservative one. We can all sit around and accuse New Labour of doing lots wrong - yes they did, but that's yesterday. This is today - and today people are being made redundant.

    Typical of this is your sideswipe at Labourt regarding the role of the manager who went to court. Managers do not get appointed by New Labour in any industry - they are appointed by HR departments. In all probabilioty, the board of directors were not even aware of his existence until he went to court.

    Also, the DWP agreed redundancy programme was for the one in 2008. This programme was agreed by IDS!!!!

    I fear we will just have to agree to disagree because accusing as you are seems pointless and totally misses the point.

    You seem hellbent on blaming New Labour for everything and to be honest it really is getting rather boring now. So feel happy to reply if you must, but I do not intend to respond further.

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